My superior wanted to undertake a project costing 222K for laundry are. They want to undertake this project by administration by awarding the contract to a contractor (Labor only). We will purchase the materials needed for the project. What are the violations we are facing for our actions? What course of action should we do in order to avaiod any violations? thank you

Procurement by administration is applicable only to infra projects. Please read GPPB resolution 018-2006 specifically no 3 regarding the conditions and requirements for the use of "by administration"..

Thank you for your response sir. I think this is classified as an infra project because this is part of an existing building... correct me if im wrong sir. Still, we didn't post this in Philgeps. What are the parameters or specific steps we should take in order to avoid any problem in the future. Thanks

Section 54.2 of the revised IRR provides for the posting of certain Alternative Mode of Procurement.. Also if all the conditions in no. 3 of GPPB resolution 018-2006 are complied with, you will not commit any problem in the future.

It depends if it is a laundry area not the machines to be use in laundry then it is considered infra. that's why I have said that if all the conditions and requirements under the by admin procurement has been complied with then it can be use as mode of procurement.

angelo wrote:My superior wanted to undertake a project costing 222K for laundry are. They want to undertake this project by administration by awarding the contract to a contractor (Labor only). We will purchase the materials needed for the project. What are the violations we are facing for our actions? What course of action should we do in order to avaiod any violations? thank you

One of the guidelines for implementation of infra projects "By Administration" is that contractors should not be used either directly or indirectly in the process.

If you are going to award the labor component to a labor contractor, that would be a violation of the guidelines. The labor component of the project could be undertaken by either using your own personnel, or doing it by hiring job order, or by "pakyaw" contract. In a pakyaw contract you are not allowed to hire a licensed contractor or a labor contractor.

angelo wrote:My superior wanted to undertake a project costing 222K for laundry are. They want to undertake this project by administration by awarding the contract to a contractor (Labor only). We will purchase the materials needed for the project. What are the violations we are facing for our actions? What course of action should we do in order to avaiod any violations? thank you

One of the guidelines for implementation of infra projects "By Administration" is that contractors should not be used either directly or indirectly in the process.

If you are going to award the labor component to a labor contractor, that would be a violation of the guidelines. The labor component of the project could be undertaken by either using your own personnel, or doing it by hiring job order, or by "pakyaw" contract. In a pakyaw contract you are not allowed to hire a licensed contractor or a labor contractor.

query po.

what if a certain group/individual applies for a business permit say, "labor or pakyaw services" business permit only for below 500T infra project labor cost, and the PE's decides to conduct the activity thru Competitive Bidding and award the cost of the labor project to the LCRB.. would the PE be violative of the Guidelines of the Pakyaw Contract?

angelo wrote:My superior wanted to undertake a project costing 222K for laundry are. They want to undertake this project by administration by awarding the contract to a contractor (Labor only). We will purchase the materials needed for the project. What are the violations we are facing for our actions? What course of action should we do in order to avaiod any violations? thank you

One of the guidelines for implementation of infra projects "By Administration" is that contractors should not be used either directly or indirectly in the process.

If you are going to award the labor component to a labor contractor, that would be a violation of the guidelines. The labor component of the project could be undertaken by either using your own personnel, or doing it by hiring job order, or by "pakyaw" contract. In a pakyaw contract you are not allowed to hire a licensed contractor or a labor contractor.

query po.

what if a certain group/individual applies for a business permit say, "labor or pakyaw services" business permit only for below 500T infra project labor cost, and the PE's decides to conduct the activity thru Competitive Bidding and award the cost of the labor project to the LCRB.. would the PE be violative of the Guidelines of Pakyaw Contract?

The award of pakyaw labor contract should also be through the competitive process, but should be limited to those groups which are not labor contractors.

However, if the award was really done through competitive bidding and limited to those registered businesses, I believe it would not be violative of the guidelines on pakyaw contract precisely because said guidelines would no longer apply as it could no longer be considered "pakyaw contract", but "labor contract" awarded thru competitive bidding.